Recently, as one of the representative organizations of ESG investment system, China Southern Asset Management has fully offset its own carbon emissions by purchasing and canceling carbon offset indicators on the basis of effective implementation of operational carbon emission management and energy conservation and emission reduction measures. It became the first asset management company in China to achieve carbon neutrality.
It is understood that China Southern Asset Management has effectively implemented carbon emission management and green operation in its own carbon emission management through the energy-saving and emission reduction design of the headquarters building, renting an energy-efficient data center and actively implementing energy-saving and emission reduction measures within the company. In 2020, it purchased and cancelled 176 tons of voluntary carbon emission reduction certified emission reductions (VCUs) for the direct emission of 175.1 tons of carbon dioxide equivalent generated by the use of fossil energy, and completely offset the direct emission. China Southern Asset Management purchased and sold 6,694 international green certificates (I-RECs) for the indirect carbon emissions generated by the purchased power of 6,693.4 megawatt hours, which completely offset the indirect emissions. So far, China Southern Asset Management has fully offset its own carbon emissions by purchasing and canceling carbon offset indicators on the basis of effective implementation of operational carbon emission management and energy saving and emission reduction measures, thus realizing the carbon neutrality of the organization's own operational activities.
At present, China's economy has changed from a high-speed growth stage to a high-quality development stage, and "peak carbon dioxide emissions" and "carbon neutrality" have also become national strategies. In this process, ESG investment philosophy that advocates green development and sustainable development is gradually recognized by domestic mainstream investment institutions. China Southern Asset Management regards becoming "a world-class asset management group worthy of trust" as its vision, and it is its bounden duty to practice social responsibility. In order to promote China's long-term goal of "peak carbon dioxide emissions by 2030 and carbon neutrality by 2060," China Southern Asset Management actively participates in the actions to help realize the vision of carbon neutrality from the following five aspects.
The first is to strengthen carbon emission management. China Southern Asset Management has established an internal carbon emission management system, and calculated the carbon emissions from the company's operations according to the internationally accepted standards, and from this year, it will realize the carbon neutrality of the organization's own operation activities (scope 1: direct emission of all greenhouse gases; Scope 2: indirect greenhouse gas emissions from purchased electricity, heat or steam consumption), becoming the first mutual fund to promise and implement carbon neutrality. In the future, with the improvement of carbon management system, the goal of carbon neutrality will be extended to scope 3 (other indirect emissions generated in the company's value chain that are not covered by scope 2, including upstream and downstream emissions, are not generated from emission sources owned or controlled by the company).
The second is to gradually form a long-term mechanism of information disclosure. China Southern Asset Management, based on the regulatory requirements and the actual situation of the company, learns from the disclosure suggestions put forward by the Working Group on Climate-related Financial Information Disclosure (TCFD), and refines all-round disclosure indicators covering governance, strategy and risk management. At the same time, it promotes the disclosure of environment-related information of the fund itself and portfolio, and promotes long-term sustainable and responsible investment.
The third is to establish a climate risk assessment mechanism. China Southern Asset Management adds the influence analysis of climate factors into the R&D process, attaches importance to using quantitative and systematic methods to manage climate risks, and incorporates them into the process of daily investment and business decision-making, further refines relevant rules and means of internal risk control, and realizes more effective management of the organization's own climate risks.
The fourth is to build a multi-level ESG and climate investment and financing product system. According to the principles of internationalization, specialization and differentiation, China Southern Asset Management comprehensively explores and practices the localization and integration of ESG. On this basis, China Southern Asset Management strengthens the research on carbon emission reduction factors in ESG investment and actively develops related fund products, such as China Southern ESG Theme Equity Fund, China Southern CSI New Energy ETF, China Southern New Energy Industry Trend Hybrid Fund, China Southern CSI Yangtze River Protection ETF, etc.
The fifth is to actively advocate ESG concept and implement ESG related work in all aspects. As the pioneer of mutual fund industry, China Southern Asset Management actively carried out various environmental protection and charity activities, and fully integrated the core concepts and standards of ESG into the operation and investment management, and became the board member of PRI and China ESG Leaders' Organization.
In addition, as a signatory member of "Climate Action 100+", China Southern Asset Management actively communicates with listed companies to ensure that the 161 largest greenhouse gas emitting enterprises in the world take necessary actions on climate change, improve governance and strengthen information disclosure related to climate. China Southern Asset Management has also made practical actions in asset allocation. In the past few years, it has greatly reduced the investment in companies with high pollution and high energy consumption, and greatly increased the proportion of investment in renewable energy. China Southern Asset Management also won the Golden Responsibility Award of Sina Finance, Evergreen Award of Finance and Economy magazine, Asia money, China Green Finance Award and other awards for its outstanding achievements in ESG.
China Southern Asset Management
Si Chen
[email protected]
http://www.southernfund.com/en/
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